Buying a condo in Mexico: the condominium regime

What you own

The federal civil code (art. 951) describes the model: each owner has a “singular and exclusive right of property” over the apartment, house or premises, plus a co-ownership right over the common elements necessary for its use. Mexico City’s law repeats it (arts. 3 and 7): the private unit can be sold, leased, mortgaged or encumbered; the co-ownership right over the common elements is “accessory and indivisible” and cannot be sold, encumbered or seized separately.

The law (art. 2) defines the private unit as the apartment, dwelling or premises plus annexed elements such as a parking space or storage room, but only if the founding deed says so. Check that your parking space and storeroom are in the deed itself and not merely in a sales brochure.

The documents of a condominium

• The escritura constitutiva. The regime is created by a public deed before a notary (art. 3). Under art. 9 it contains the owner’s declaration, a description of each private unit with its percentage of ownership (indiviso), the use of the building, a description of the common areas, the cases in which the deed and rules may be modified, and the owners’ duty to take out insurance against earthquake, flood, explosion and fire with third-party liability cover. When the regime is created from a new construction the notary must have seen, among others, the last title, the construction manifest and the land-use certificate, and the developer posts a bond.
• The reglamento interno. The internal regulation “regulates the use of common areas” and complements the law for the particular building (art. 2).
• Registration. The founding deed and later sales must be registered in the property registry (art. 10); see the registry guide.
• Changes. Modifying the deed or the internal regulation takes an extraordinary general assembly, a simple majority present and votes representing 75 % of the total value of the condominium (art. 11).

Ask the notary for copies of the escritura constitutiva and the reglamento before you sign.

Fees and the reserve

Each owner must pay promptly the fees set by the general assembly (art. 55): a maintenance and administration fund for current costs, and a reserve fund. Art. 56 says the fees are not subject to set-off or personal defences, with a narrow exception for an owner shown to be insolvent. Late payment carries default interest at the rate the assembly or the internal regulation sets (art. 59), and the statement of arrears signed by the administrator and the head of the oversight committee, with the supporting receipts and a certified copy of the assembly record, is an executive title (a document that supports fast court enforcement). For the running costs after purchase see HOA fees.

The no-debt certificate (article 60)

When there is a contract transferring ownership of a unit, “the seller must deliver to the buyer a certificate of no debt” covering ordinary maintenance and administration fees, the reserve and any extraordinary fees, “issued by the Administrator of the condominium”. The buyer of any private unit “becomes jointly and severally liable for the payment of the existing debts” of the unit, “except where the Administrator has issued and delivered” the certificate. In practice:

1. Ask the seller for the certificate before the deed; ask for it in the deed’s attachments.
2. Check its date: it only proves the position on the day it was issued.
3. Ask whether any extraordinary assessments have been approved but not yet billed. The law lists extraordinary fees among the items.

This is a Mexico City rule. In other states the same protection may or may not exist; Quintana Roo, for instance, has its own laws, which were not read. Ask the notary what applies where the building stands.

Property tax on a unit

Municipal tax laws often value each unit separately. The Othón P. Blanco (Quintana Roo) law says that for property under the condominium regime the tax base is determined by the value of each private unit resulting from the constitution of the regime (art. 13). Property-tax rules are municipal; see property tax.

New buildings and defects

For a developer sale, the consumer-protection law sets minimum warranties of five years for structural matters, three years for waterproofing and one year for the rest, counted from actual delivery (LFPC art. 73 QUÁTER). The developer must also inform you of the percentage of common-area ownership (art. 73 BIS, item VII). See buying off-plan.

Which professional to consult

The notary reviews the founding deed and the registry entries (notary’s role). A real-estate lawyer (profile) can compare the reglamento with your plans, for example short-term letting.